What is Dropshipping and How It Works

Let’s assume you want to sell an item. How do you start? You buy an item from the supplier or manufacturer, keep the item in stock, list the item, and when the item sells, you pack it up and dispatch to the buyer. When you dropship, the concept is different. Drop shippers do not keep any items in stock. They list the item on a website to sell, once the item gets sold, they log into the supplier’s website and buy the item, make the payment, and when it comes to putting the delivery address, it is the buyer’s for item delivery. The supplier will pack it up and then send it to the buyer. The buyer never knows where the product came from.

The concept of Dropshipping model is gaining popularity as the seller does not need to keep any items in stock, nor do you have to take the stress of packing and dispatching. The Drop shipper keeps the difference.:

Some benefits of dropshipping are:

Stock keeping is not required

Can be operated without a warehouse

It does not require Packaging and Dispatch

No Office is required

It provides complete freedom to work from anywhere/anytime

The drawbacks or
the challenges are:

Sudden stock shortages

Finding reliable suppliers

Unhappy customers if they come to know your source

Like in any business, dropshipping also has its challenges. You may need to pick the items that really sell. Sometimes, buyers simply need to return items and drop shipper will be the only point of contact for the buyer.

However, if you have a business in mind, I recommend dropshipping as it helps you learn a lot and interact with customers directly and understand them better.